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The State of Venture Investment in the Corona Crisis


Challenges Facing Venture Capital during Covid-19 Crisis

At Elm's webinars, we give the floor to top-tier specialists in many fields of interest to our company to share their experience and provide a gimps of lessons learned from their career. We were thrilled to host Mr. Philip Bahoshy, the founder and CEO of MAGNiTT Company, the biggest e-platform for startups in the Middle East where investors and startups meet for financing matters.

The impact of Covid-19 on the investors’ liability

The impact of the Covid-19 crisis on the venture capital investment market will appear in the 3rd and 4th quarters of 2020, and the impact cannot be predicted from the 1st or 2nd quarter.

A precise strategy for the investors of venture capital

Things are still vague and ambiguous about investing, but it depends on cash flow for the investors.

Digital transformation in startups

Many startups transformed their market present to online completely as an essential and successful step to surmount current challenges.

Who thrived and who took the biggest blow

It is difficult to determine if the companies will face a big hit in their profits, but in general, the demand has increased significantly for vital sectors such as health and education.

Tips for startups in to surmount current challenges

The number of deals and investments will decrease compared to last year, and therefore it is very important to focus on the source of current revenues. Startups should think if the current revenues were zero, how many months can they continue to operate? If the answer is from 1-year to 18-months, then they will be able to survive. However, startups need to improve their products or services to align with their current needs. But if the answer is a month, 2 or 3 months, then startup must start making critical decisions regarding expense management. Also, it is necessary to develop a SWOT analysis that clarifies the strengths and weaknesses and focuses on maintaining a good cash flow. On the other hand, they must be aware of unfair provision that potential investors may introduced in the current circumstances which can cause the company huge burden of debt for several years. The key to success is to cope and adapt with the current climate and landscape during and after Covid-19.